I have read your information page about capital gains, but I need some clarification on how the value of the stock is calculated.

My husband will retire in July 08 from CP Rail. He has purchased stock by way of the company stock purchase program on a bi-weekly basis for a few years.

When he first signed up for the program, the stock was worth approxmately $30.00 per share. It is now hovering at near $70.00. In January 09, he wants to sell some of that stock and pay down our mortage.

How will the capital gains be calculated if the purchase price of the stock varied at each transaction?. Can you specify that you wish to sell your most expensive stock first?